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Official Explanation

Diagramming this problem helps to simplify it. The sentence, "If the City Parks Department receives the same allocation in next year's municipal budget, it is expected to raise admission fees to the indoor recreation center by fifty cents," can be diagrammed as:

SA—>50¢

SA stands for "receives the same allocation in next year's municipal budget" and 50¢ stands for "raise admission fees to the indoor recreation center by fifty cents." The next sentence, "If the City Parks Department announces a higher admission fee increase, then its budget allocation for next year must have been reduced," can be diagrammed as:

~50¢—>~SA

This diagram can be recognized as the contrapositive. Thus, in finding the answer to this problem, you should look for an "if, then" statement and its contrapositive. In selection (C), the sentence, "If the price of raw plastic pellets remains the same, companies that manufacture molded plastic parts such as fishing tackles and other plastic fishing bobbers can be expected to keep their wholesale prices at last year's levels," can be diagrammed as follows:

P$—>W$

P$ stands for "the price of raw plastic pellets remains the same" and W$ stands for "keep their wholesale prices at last year's levels." The sentence, "Thus, if these wholesalers raise their prices on fishing bobbers, it will be because raw material costs increased." can be diagrammed as follows:

~W$—>~P$

This is the contrapositive of P$—>W$. The reasoning is the same as that expressed in the passage.

The answer is selection (C).

Hope it helps
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